A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase
b. decrease
c. stay the same
d. does not affect profits
a
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In the goods market, firms ________ and households ________
A) supply goods and services; purchase goods and services B) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit C) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services D) purchase goods and services; supply goods and services E) hire land, labor, capital, and entrepreneurship services; supply goods and services
One of the major reasons why the US trade deficit with China has grown in the last 10 years is that
a. the Yuan is seriously undervalued relative to where it would need to be to lead to a zero trade deficit. b. the yuan is seriously overvalued relative to where it would need to be to lead to a zero trade deficit. c. currency markets can never bring trade into balance, even in the long run. d. US productivity has fallen recently. e. the U.S. has suffered two sharp recessions.
Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have data for price (P), MR, ATC, MC, AVC, at the quantity of 1,000 breads a day. The firm's total profit is calculated by
a. P – AVC b. P – ATC c. P – MC d. (P – ATC)Q e. TR – TVC
If a person had increasing marginal utility, then the decline in utility from losing $1,000 would be greater than the increase in utility from gaining $1,000
a. True b. False Indicate whether the statement is true or false